Key Takeaways:
- CZ reshared a claim alleging Coinbase was behind a Bloomberg report targeting Trump’s crypto project and Binance.
- Coinbase denied any involvement, calling the accusation “pure misinformation” and reaffirming a non-hostile stance toward competitors.
- The Bloomberg report claimed Binance developed USD1’s smart contract and that Zhao sought a pardon after a major UAE investment.
Binance founder Changpeng “CZ” Zhao reignited controversy by reposting a tweet alleging that Coinbase was the anonymous source behind a Bloomberg report critical of Trump’s crypto initiative, World Liberty Financial, and Binance.
The claim, made by crypto commentator Matt Wallace, suggests that Coinbase feared a presidential pardon for Zhao and Binance’s potential return to the U.S. market – moves that could threaten Coinbase’s dominance.
Wallace accused Coinbase of targeting Trump to harm Binance and labeled the act “anti-American.”
Zhao amplified the allegation but offered no further comment.
The Bloomberg article at the center of the dispute alleged that Binance developed the smart contract for USD1, a stablecoin tied to World Liberty Financial, and claimed Zhao sought a pardon following a $2 billion UAE investment involving the token.
It also noted that over 90% of USD1 remains in Binance wallets, potentially generating significant interest income.
Coinbase Chief Legal Officer Paul Grewal denied the allegations, calling them “pure misinformation” and stating that Coinbase does not attack competitors.
Sorry— this is pure misinformation. We absolutely did not contribute to this story.
— paulgrewal.eth (@iampaulgrewal) July 13, 2025
We don't attack competitors, and we welcome any businesses that share our goal of growing the crypto pie.
You should keep looking for an actual source. https://t.co/OoJIEVqntS
Zhao responded by labeling the report a “hit piece” riddled with errors and hinted at possible legal action for defamation, referencing previous lawsuits.
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